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The Commonwealth’s A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that any Australian taxes, fees or charges, or the discharging of the liability to make such a payment, imposed under a law of a state, territory or the Commonwealth, is consideration for a supply and is subject to the Goods and Services Tax (GST).
Guidelines on the Division 81 process have been prepared to assist to determine whether taxes, fees and charges administered by Tasmanian Government agencies can be included on the Division 81 determination.
The Commonwealth Treasurer reviews the Division 81 determination twice a year to ensure that it remains current. An updated determination takes effect from 1 January and 1 July each year. As part of the review process, each state and territory is requested to review the Division 81 determination and advise of any additions, deletions or amendments to the part of the determination relating to their jurisdiction.
When introducing new taxes, fees and charges, it is important for agencies to take into consideration that the determination is only updated at two points in the year. If a new tax, fee or charge is introduced, it will be subject to GST until it can be included on the next Division 81 determination. Arrangements for special determinations can be made, but these are only used in exceptional circumstances.
Tasmania’s section of the most recent Division 81 determination can be downloaded as a separate document, alternatively the complete version of the most recent Australian Division 81 determination can be found here on the Comlaw web site.
For more information please contact Angelo Pavlides, Assistant Director, Intergovernment and Financial Policy Branch, Revenue Policy, on (03) 6233 3538 or by email at Angelo.Pavlides@treasury.tas.gov.au.